By Keith Loria, Contributing Editor
Lincoln Property Co., and Alcion Ventures have formed a joint venture to convert 1300 Flushing Ave., a six-story warehouse and distribution building in Brooklyn’s Bushwick neighborhood, into Class A creative office space.
HFF, L.P. has secured $51.175 in first mortgage financing for the joint venture, finding a three-year, floating-rate loan with two one-year extension options with Mack Real Estate Credit Strategies. Loan proceeds will be used to acquire and reposition the asset.
Plans for the redevelopment are to turn to the pre-war building into 122,697 square feet of rentable Class A creative office space with high ceilings, natural light, exposed structural work and ducting, large operable windows, pet-friendly policies, functional roof space and other non-traditional design elements, including living rooms and kitchens.
According to Newmark Grubb Knight Frank’s 2015 3Q Downtown Brooklyn Market Report, availability in the area fell to 6.1 percent from 6.3 percent the previous quarter, and 7 percent the year prior. The year-over-year decline is largely attributed to strong leasing at the Dumbo Heights development, which has attracted several large TAMI tenants. With less space on the market, more developers are getting creative with their spaces.
The 1300 Flushing Ave., building is located at the intersection of Flushing and Cypress avenues, considered the epicenter of the popular Bushwick neighborhood. The area is known as a burgeoning creative and energetic neighborhood with newly-constructed multi-housing, condo buildings, organic grocers and upscale restaurants recently new to the area, plus a flourishing artist community.
The property is two blocks from the Jefferson Street L Subway Station, which provides direct access to Union Square and Manhattan within 15 minutes.
The HFF debt placement team was led by senior managing director Doug Bond, managing director Mark Wintner and associate director Christopher Peck.